A "non-recourse" loan generally refers to a lending agreement involving real estate where the property is the only security in case of a default.

IRS rules regarding the use of IRA or 401k funds when borrowing / leveraging the purchase of an investment property preclude encumbrance of the IRA / 401k plan owner-borrower, or of the IRA or 401k plan itself.

Basically this leaves a “non-recourse” loan as the only practical choice when it is desirable to leverage a real estate investment or the purchase of a business or franchise as part of an IRA or 401k investment strategy.

Since this very specific type of loan may be essential for certain investments using IRA or 401k monies we have developed non-recourse loan resources on a national basis. Real estate and business or franchise investors can now integrate a non-recourse loan with IRA or 401k plan monies, if it makes economic sense.

Here are some important points to consider:

• FICO scores down to 575 may be acceptable.
• No DSCR (Debt Service Coverage Ratio) is required.
• No cross collateralization with other business or personal assets.
• 25 to 30 year amortization and may be assumable.
• Free case specific basic review of proposed loan request.
• Loan requests need to fall in the range of $200k to $2 million.